MGX Minerals Closes $4.1 Million Second Tranche of Oversubscribed Private Placement
December 21 2017 - 8:30AM
InvestorsHub NewsWire
MGX Minerals Closes
$4.1 Million Second Tranche of Oversubscribed Private
Placement
Vancouver, BC -- December 21, 2017 -- InvestorsHub
NewsWire -- MGX Minerals Inc.
(“MGX” or the “Company”)
(CSE:
XMG / FKT:
1MG / OTC:
MGXMF) is pleased to announce that is has closed the
second and final tranche of a non-brokered, private placement for
4,079,000 units ("Units") at a price of $1.00 per
Unit for gross proceeds of $4,079,000 (the
“Offering”). The aggregate gross proceeds raised
under the Offering was $7,137,000 through the issuance of an
aggregate of 7,137,000 Units. The Offering was made concurrently
with a private placement of flow through units, of which a second
and final tranche is also expected to close this week.
Each Unit consists of one common share of the Company (each, a
“Share”), and one transferable common share
purchase warrant (each whole warrant, a
“Warrant”), with each Warrant entitling the holder
to acquire one common share of the Company (each, a
“Warrant Share”) at a price of CA$1.15 per Warrant
Share for a period of 36 months from the closing of the
Offering.
The Company will use the proceeds of the Offering for advancement
of the Company’s lithium and magnesium assets, including continued
investment into extraction equipment and PurLucid, property
payments and additional acquisitions, engineering studies,
permitting activities, and for general working capital.
In connection with the Offering, the Company paid a finder's fee to
EMD Financial Inc. (“EMD”) equal to a cash payment
of 8% of the gross proceeds raised from purchasers of the Units
introduced to the Company by EMD, common shares of the Company
equal to 4% of the total number of Units sold, and non-transferable
warrants equal to 4% of the total number of Units sold under the
Offering (the “Finder Warrants”). Each Finder
Warrant entitles the holder to purchase one common share at a price
of CA$1.15 for a period of 36 months following the closing
date.
The securities issued pursuant to the Offering and the other above
matters are subject to a hold period of four months and one
day.
About MGX Minerals
MGX Minerals is a diversified Canadian resource company with
interests in petrolithium, magnesium and silicon assets throughout
North America. Learn more at www.mgxminerals.com.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking
Statements
This news release contains forward-looking information or
forward-looking statements including the completion of the rights
offering (collectively "forward-looking information") within the
meaning of applicable securities laws. Forward-looking information
is typically identified by words such as: "believe", "expect",
"anticipate", "intend", "estimate", "potentially" and similar
expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any forward-looking
information provided by the Company is not a guarantee of future
results or performance, and that actual results may differ
materially from those in forward-looking information as a result of
various factors. The reader is referred to the Company's public
filings for a more complete discussion of such risk factors and
their potential effects which may be accessed through the Company's
profile on SEDAR at www.sedar.com.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
“U.S. Securities Act”) or any state securities laws and may not be
offered or sold within the United States unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
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